Core ideas:
Event: the company announced that (1) the company and Yueda Automobile jointly funded the establishment of Jiangsu Zhongyi Yueda New material Technology Co., Ltd., which contributed 270 million yuan with self-raised funds, accounting for 90% of the registered capital. It is proposed that Zhongyi Yueda will invest 1.2 billion yuan to build a high-performance electronic copper foil project with an annual output of 24000 tons in Yancheng Development Zone; (2) it is proposed to invest in Wuhan Zhongyi New Materials Co., Ltd., with a registered capital of 300 million yuan and a shareholding ratio of 100%. Mainly engaged in new composite material research, development, production and sales and other business.
Hand in hand with Yueda Automobile, the production capacity of lithium copper foil continues to expand. According to the investor relations activity record table announced by the company on August 31, the company has an existing production capacity of 29500 tons, with another 26000 tons under construction, and plans to put into production at the end of 2022 and mid-2023 respectively, that is, the production capacity is expected to reach 55500 tons by mid-2023. in addition, the new production capacity of 24000 tons in Yancheng, which is reviewed by the board of directors, can reach about 80,000 tons after completion. The signing of the relevant agreement with Yueda Automobile and Yancheng Economic and technological Development Zone New Energy Automobile Industrial Park can fully integrate the superior resources of all parties, give full play to the synergy, and help to further improve the strategic layout of the business plate in the upper and lower reaches of the industrial chain.
Cut into the field of composite copper foil and open up the space for long-term growth. According to the investor relations activity record table announced by the company on August 31, the Wuhan subsidiary planned to build a production line with an annual output of 5 million square meters in advance, to carry out process, technology, equipment verification, optimization and market application promotion, etc. to prepare for large-scale production and construction. At present, the company plans to use magnetron sputtering + electroplating two-step process.
Profit forecast and investment advice: the company's revenue from 2022 to 2024 is expected to be 3.026 billion yuan, 4.69 billion yuan and 7.356 billion yuan respectively, and the net profit of returning mother is 494 million yuan, 785 million yuan and 1.229 billion yuan respectively, and the corresponding EPS is 4.89,7.77 and 12.16 yuan per share respectively. Based on the comparable company valuation and cutting into the composite copper foil field, we believe that the company's 22-year reasonable PE valuation is 25 times, corresponding to the company's reasonable value of 122.17 yuan per share, maintaining the company's "buy" rating.
Risk hints: the risk of high concentration of downstream customers, the risk of intensified competition in the industry, and the risk of major obstacles to the future transformation of 4.5 μ m lithium copper foil.
